Indiana has opportunity to exploit its fiscal advantages

As Hoosiers we're all too accustomed to hearing that our state ranks near the bottom on everything from smoking and obesity rates to education attainment and personal income. But here's one ranking in which Indiana excels: state government debt, as measured both per capita and per private sector worker.

A state-by-state analysis released Tuesday by the nonpartisan advocacy group State Budget Solutions found that Indiana's debt per person is about $5,700. That's less than half of the national average of $13,000 per capita for state governments.

In fact, among the 50 states, only Nebraska ($4,200) and Tennessee ($5,300) have lower per capita debt. Indiana is second in the nation, behind only Nebraska, in average debt for each private sector worker. And, at less than 15 percent, we're third in the nation, behind Nebraska and Tennessee again, in state debt as a percentage of gross state product.

The study also indicates that Indiana is in relatively good position to meet future public-sector pension obligations, a circumstance that should enable the state to maintain its recent history of strong fiscal discipline even as the large baby boomer generation retires. Again, that runs counter to the circumstances most states face in terms of pensions for teachers, public safety workers and other public employees.

In short, Indiana's elected leaders, most notably Gov. Mitch Daniels, truly have been frugal with the public's dollars. As a result of that frugality, Indiana now has much more fiscal flexibility than most other states, including our neighbors in Illinois, who are staggering under a per capita debt of more than $21,000 a person.

Such flexibility isn't merely a matter of bragging rights. Unlike states carrying heavy debt loads, Indiana should have the means to address unmet needs, including a long overdue investment in early childhood education. And we can do so without wrecking a tax structure that's been rebuilt in recent years to promote economic development.

Bottom line: Indiana is emerging from a deep national recession with an honestly balanced two-year budget and relatively low long-term debt. We've developed a strong competitive advantage, one the incoming governor and other state leaders need to aggressively exploit.

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Indiana has opportunity to exploit its fiscal advantages

As Hoosiers we're all too accustomed to hearing that our state ranks near the bottom on everything from smoking and obesity rates to education attainment and personal income. But here's one ranking